May 12. While Spirit Airlines’ board of directors may think they have a clear path toward the merger with Frontier Airlines, they could face a backlash from shareholders and the Department of Justice (DOJ) on the merger’s merits.
While larger shareholders will decide the fate of the merger vote, both Spirit and Frontier will have a bumpy road ahead, no matter the voting outcome.
To recap, in February Frontier offered to acquire ULCC Spirit in a cash and stock offer that valued Frontier at $2.9 billion. The two airlines agreed and signed a merger agreement that seems explicitly designed to prevent either backing out or accepting offers from any other party.
Source: Simple Flying